PharmStar Pharmaceuticals Receives Updated Intellectual Property Appraisal Valued at $32 Million
May 09 2011 - 1:21PM
Marketwired
PharmStar Pharmaceuticals, Inc., (PINKSHEETS: PHAR) (the
"Company"), a U.S. drug developer, manufacturer and marketer of the
FDA-approved, Over-the-Counter (OTC) liquid pain reliever
Aquaprin™, today announced that it has received an updated
appraisal for the Company's intellectual property. The new report
states that the intellectual property associated with the patent,
know-how and trademark positions of PharmStar Pharmaceuticals is
valued at $32 million. The report was filed as a supplemental
information disclosure with the OTC Markets on May 6, 2011 and may
be found at http://www.otcmarkets.com/stock/PHAR/financials, under
the "Supplemental Information -- PharmStar IP Valuation."
The appraisal report was provided by Hultquist IP, a firm that
represents clients in intellectual property matters in a wide
variety of technologies, including: chemical, biological,
electronic, solid-state, mechanical, and information technologies.
According to the Hultquist report, "This total present value of $32
million is determined to be the value of the intellectual property
rights associated with the Aquaprin™ product and the Insta-prin™
applicator product, since in the absence of the intellectual
property applicable to these products, commercialization would not
be viable, and there would be no barrier to entry to far larger
competitors with correspondingly larger resources. The exclusionary
rights associated with the proprietary patent position of PSP,
together with the branding trademarks, and substantial know-how of
Howard Phykitt, warrant such valuation. We therefore conclude that
the intellectual property rights relating to the Aquaprin™ product
and the Insta-prin™ applicator product are fairly valued at $32
million."
On April 28, 2011, the Company filed its Quarterly Report for
the first quarter of 2011. In the report, the Company recognized
the value of its Intellectual Property and Patents, Research and
Development of Patents at a total of $13,104,549. The Company will
continue to list these assets at their imputed book value, rather
than the determined market value pursuant to the report.
"Though we are pleased with the valuation ascribed to the
Aquaprin™ product line by Hultquist IP, we believe that the prudent
course of action at this time is to continue to show the value of
our core assets at book value. We will do so until such a time as
the Company is in full production, or has a clear and substantial
reason to modify the said valuation," stated Howard Phykitt,
Chairman and CEO of PharmStar.
About PharmStar Pharmaceuticals PharmStar
Pharmaceuticals, Inc. is a U.S.-based drug development,
manufacturing and marketing company and the innovator of Aquaprin™,
an FDA-approved Over-the-Counter (OTC) liquid pain reliever. In
development since 1993 with over $3 million invested to-date,
Aquaprin™ is a liquid derivative of aspirin based on a
patent-pending formula. The product is designed to dissolve nearly
instantly in just 1.5 ounces of water, which can be absorbed into
the bloodstream up to 10 times faster than traditional OTC pain
relievers, and with little to no stomach upset. PharmStar's
headquarters are located in Rocky Mount, NC. For more information,
visit www.pharmstarinc.com.
Forward-Looking Statements Disclosure This press release
includes "forward-looking statements" within the meaning of the
federal securities laws, commonly identified by such terms as
"believes," "will," "looking ahead," "anticipates," "estimates" and
other terms with similar meaning. Although the Company believes
that the assumptions upon which its forward-looking statements are
based are reasonable, it can give no assurance that these
assumptions will prove to be correct. Important factors that could
cause actual results to differ materially from the Company's
projections and expectations are disclosed in the Company's filings
with the Securities and Exchange Commission. All forward-looking
statements in this press release are expressly qualified by such
cautionary statements and by reference to the underlying
assumptions.
Contact: PharmStar, Inc. 919-794-7000 Email Contact
www.pharmstarinc.com Investor Contact: Email Contact